Top Turbine Makers to Spend $2.6bln on R&D

Laxman Pai
Thursday, July 25, 2019

Research and development (R&D) expenses among the world's top ten wind turbine manufacturers are expected to exceed $2.6 billion by 2023.

The  R&D expenses more than doubled in the last four years, reaching $1.8m in 2018, as demand grows for ever-bigger on- and offshore models, according to the latest research from Wood Mackenzie Power & Renewables.

The analyst said that over 90 new onshore and offshore turbines are expected to be launched within the next five years by the top 10 leading manufacturers.

"Turbine OEMs have accelerated R&D investments in next-generation turbine platforms, battling against new unit sales margin compression and the market’s need to further reduce wind energy’s Levelized Cost of Electricity (LCOE). Turbine technology investments are central to lowering LCOE below the €15-20/MWh mark and mitigating developer/off-taker increased exposure to merchant power prices," said the report.

“Offshore wind turbine sizes are expected to sit at around 20MW by 2030. The cost of technology, balance of plant equipment and installation of vessels to handle such large components will play a crucial role in this increase. Turbine OEMs must work in tandem with the supply chain to ensure these technologies can be developed and deployed cost-effectively,” said Shashi Barla, Wood Mackenzie Power & Renewables Principal Analyst.

Wind turbine OEMs are expected to continue their frantic pace of new product introductions, including 7-8MW onshore turbines with 200+m rotors expected to be available by 2025 and 20+MW offshore turbines with 280+m rotors possible before 2030.

China, India, and the U.S. are expected to lead the market through 2028.

“Ultra-low wind IEC IV class wind turbines, within the 3.XMW class, are becoming mainstream platforms in China. New transmission lines in high-wind provinces Inner Mongolia and Xinjiang are alleviating grid congestion, therefore enabling new wind projects to proceed. OEMs will deploy the up-rated IEC class turbines in these provinces.

“There’s strong interest from western OEMs in India as domestic OEMs face challenges. Most OEMs are expected to migrate to the 3.0MW configuration with 145-155m rotors within the next 12 months.

“Scandinavian markets have been early adopters of the latest generation wind turbine technologies. Within the region, Finland was the first country to test the latest generation technologies from Vestas, Nordex and Enercon. We expect corporate PPA market development to accelerate the adoption of such technology,” said Barla.

Categories: Wind Power Renewable Energy Turbines

Related Stories

Flare Gas Recovery Meets the Future

Offshore Service Vessels: What’s in Store in 2025

ABS Approves Hanwha Ocean’s FPSO Design

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Transocean’s Drillship to Stay in India Under New $111M Deal

Sunda Energy Closing in on Jack-Up Deal for Chuditch-2 Appraisal Well

Makin' a List ... Trump Prioritizes Energy Exploration, Production, Export

US Firm Finds Chinese Partner to Deliver Mobile Offshore Drilling Units

Shelf Drilling Secures $200M Contract Extensions with Chevron for Thailand Ops

Korea's Hanwha Raises Offer for Singapore's Dyna-Mac Takeover

Current News

EnQuest to Acquire Harbour Energy's Vietnamese Assets

CNOOC Boosts Dongfang Gas Fields Output with New Platform Coming Online

Petronas to Retain National Authority After Sarawak Gas Deal

Yinson Production Scoops $1B Investment to Upscale FPSO Business

Petronas Greenlights Hidayah Field Development Off Indonesia

Abu Dhabi's NMDC Group Gets $1.1B Subsea Gas Pipeline Job in Taiwan

BP Targets 44% Oil, 89% Gas Increase from India’s Mumbai High Field

US Operator Finds Oil Offshore Vietnam

BP to Help Boost Oil and Gas Output at India’s Largest Producing Field

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com